Dynacons Systems & Solutions Limited's (NSE:DSSL) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• Dynacons Systems & Solutions to hold its Annual General Meeting on 30th of September
• CEO Shirish Anjaria's total compensation includes salary of ₹12.0m
• Total compensation is similar to the industry average
• Dynacons Systems & Solutions' total shareholder return over the past three years was 858% while its EPS grew by 60% over the past three years

The performance at Dynacons Systems & Solutions Limited (NSE:DSSL) has been quite strong recently and CEO Shirish Anjaria has played a role in it. Coming up to the next AGM on 30th of September, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Dynacons Systems & Solutions

Comparing Dynacons Systems & Solutions Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Dynacons Systems & Solutions Limited has a market capitalization of ₹18b, and reported total annual CEO compensation of ₹12m for the year to March 2024. We note that's an increase of 54% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth ₹12m.

For comparison, other companies in the Indian IT industry with market capitalizations ranging between ₹8.4b and ₹33b had a median total CEO compensation of ₹9.6m. From this we gather that Shirish Anjaria is paid around the median for CEOs in the industry. Furthermore, Shirish Anjaria directly owns ₹2.3b worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. At the company level, Dynacons Systems & Solutions pays Shirish Anjaria solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Dynacons Systems & Solutions Limited's Growth

Dynacons Systems & Solutions Limited has seen its earnings per share (EPS) increase by 60% a year over the past three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Dynacons Systems & Solutions Limited Been A Good Investment?

We think that the total shareholder return of 858%, over three years, would leave most Dynacons Systems & Solutions Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Dynacons Systems & Solutions pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

So you may want to check if insiders are buying Dynacons Systems & Solutions shares with their own money (free access).

Important note: Dynacons Systems & Solutions is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.